Circular No. 4/2007
TO THE MEMBERS OF ASSURANCEFORENINGEN GARD -gjensidig-
STATUTES AND RULES 2008
The Association's Statutes and Rules for the 2008 policy year, which commences at noon GMT on 20 February 2008, contain some alterations to those applying for the 2007 policy year, as set out below.
The Extraordinary General Meeting of the Association held on 19 September 2007 endorsed the recommendation of the Committee resulting in the new Statutes of the Association (as appended to the Notice of Extraordinary General Meeting dated 27 August 2007) being adopted. The new Statutes have subsequently been approved by the Financial Supervisory Authority of Norway and will enter into force at noon GMT on 20 February 2008. The new Statutes are attached as Appendix to this circular.
This means in practice that with effect from the commencement of the 2008 policy year the Committee will cease to exist. Thus, the number of governing corporate bodies in the Association will be reduced to comprise, besides the General Meeting, only the Executive Committee (hereafter called the Board of Directors), the Supervisory Committee and the Election Committee.
In parallel with the changes made in the Statutes of the Association, the Board of Directors of the Assocoation's sister association in Bermuda and principal reinsurer, Gard P&I (Bermuda) Ltd, has reviewed the latter's governance structure. This process has resulted in an expansion of the Board of Directors of Gard P&I (Bermuda) Ltd to comprises the individuals who until the end of the 2007 policy year are members of the Committee and the Executive Committee of Assuranceforeningen Gard.
Further details about the changes in the Bye-Laws of Gard P&I (Bermuda) Ltd will be included in a circular published by the Manager for the Bermuda Club, Lingard Limited.
Rules for Ships
Rule 34 Cargo Liability
Rule 34 in the Rules for Ships has been amended for the purpose of implementing new exclusions in the Pooling Agreement (being the contractual framework for sharing of claims and collective purchase of reinsurance among the International Group Clubs). The background is that certain non-negotiable bills of lading, waybills and similar documents require by their terms or by the governing law to be produced to the carrier in return for delivery of the cargo in the same way as negotiable bills of lading. If the cargo is carried under such a non-negotiable document the club cover will not comprise liabilities and losses arising out of the delivery of the cargo without production of the relevant non-negotiable bill of landing, way bill or other document by the person to whom delivery is made.
The new Rule 34.1 (ii) shall read as follows (amendment underlined):
1. The Association shall cover the following liabilities when and to the extent that they relate to cargo intended to be or being or having been carried on the Ship:
a) liability for loss, shortage, damage or other responsibility arising out of any breach by the Member, or by any person for whose acts, neglect or default he may be legally liable, of his obligation properly to load, handle, stow, carry, keep, care for, discharge or deliver the cargo or out of unseaworthiness or unfitness of the Ship;
b) liability for loss, shortage, damage or other responsibility in respect of cargo carried by a means of transport other than the Ship, when the liability arises under a through or transhipment Bill of Lading, or other form of contract, providing for carriage partly to be performed by the Ship,
provided that unless and to the extent that the Association in its discretion shall otherwise decide, the cover under this Rule 34.1 does not include:
i. liabilities, costs and expenses arising out of delivery of cargo under a negotiable Bill of Lading without production of that Bill of Lading by the person to whom delivery is made except where cargo has been carried on the Ship under the terms of a non-negotiable Bill of Lading, waybill or other non-negotiable document, and has been properly delivered as required by that document, notwithstanding that the Member may be liable under the terms of a negotiable Bill of Lading issued by or on behalf of a party other than the Member providing for carriage in part upon the Ship and in part by another mode of transport;
ii. liabilities, costs and expenses arising out of delivery of cargo carried under a non-negotiable bill of lading, waybill or similar document without production of such document by the person to whom delivery is made, where such production is required by the express terms of that document or the law to which that document, or the contract of carriage contained in or evidenced by it, is subject, except where the Member is required by any other law to which the Member is subject to deliver, or relinquish custody or control of, the cargo, without production of such document;
If you have any questions, please contact Kjetil Eivindstad, Senior Vice President, in Gard AS.
as agent only for Assuranceforeningen Gard -gjensidig-
Chief Executive Officer